When the Western countries raised the stick of sanctions against Russia, they were full of joy thinking that they could plunder the wealth of the Russians again like the collapse of the Soviet Union, but it was clear that cutting other people's flesh did not cut it, but cut off a large piece of their own flesh with too much force.
Now that the US dollar has entered the range of interest rate hikes and balance sheet reductions, the value of the currency has gradually returned to strength, and global funds have begun to flow back to the United States. Even if inflation in the United States remains severe, at least Americans can rely on a strong monetary position to alleviate it by increasing imports. The EU and Japan, two of the spearheads of sanctions, are not so lucky, as the war situation escalates and the energy situation worsens, the euro and the yen are rapidly depreciating.
After all, the European Union is a big business, the euro is developing in the direction of the yen, and Japan's economic volume is relatively small among the major economies, making the capital withdrawal effect even more serious than the European Union, and the yen is moving towards the development of the "dark coin" with unlimited numbers.
Why is the euro yendating? The first reason is that the importance of the EU economy is declining, before Brexit the EU was the world's largest economy, and even the United States has a multi-trillion dollar gap with the EU. But now that the United States and China have single-handedly overtaken the EU as a supranational conglomerate, India and ASEAN are thriving, making the EU's role in the global economy decline rapidly.
The decline in economic rankings cannot be equated with a bad economy, but a continuous decline indicates that the economy in the future must be bad, which has been verified in Japan. After World War II, Asia, Japan and the Philippines were the first countries to flourish, because they became manufacturing centers spurred on by American capital and regional wars. However, with the rise of the other Asian Tigers, the Four Little Tigers and China, the centrality of Japan and the Philippines has disappeared, and if it were not for Japan's important strategic position and Japan's national nature, Japan would have long been reduced to a level of country with the Philippines.
The second reason is the hollowing out of money due to debt. Japan has the highest debt ratio among major economies, and its main debt comes from domestic investors, so why should the international community recognize japan's debt as valuable? The first is because Japan is highly bound to the United States politically, economically and militarily and has a large number of foreign exchange reserves mainly us debt, and the other is that Japan has a large number of investment and assets in the international community, so Japan's overdraft of its own people will be recognized in the future.
The EU will have to follow the same path as Japan in the future, because the euro has lost the support of Russian energy, and the EU's abuse of economic sanctions has also made the vast majority of countries that use the euro lose confidence in its credit, so the euro will definitely collapse. We mentioned earlier that the EU's position in the world economy is declining, a third-largest economy has the status of the world's second largest reserve currency, and this economy will continue to decline and internal strife in the future, so how can the second-largest currency status be maintained?
Japan's hollowing out forces him to overdraft his own future, and the hollowing out of the European Union means he must also learn from Japan. Because the European Union, like Japan, is a politically and militarily unable to stand on its own, and cannot rely on force as the United States can be the last support for the value of the currency, the euro must be yen-yenized. NATO also does not guarantee the value of the euro, because NATO is an organization of the United States and not of the European Union.
If we understand the reasons for the yenization of the euro, we can understand why the yen is said to be "dark money". Japan's economic take-off was achieved by overdrawing the post-war baby boomers, and japan gained a huge amount of wealth by exploiting the surplus value of this wave of people. But these wealth accumulated to a certain extent will encounter the ceiling of the United States, the United States through the economic war to plunder Japan's wealth, and the greedy Japanese did not manage their wealth well and use this money to invest in their own nation, but speculated in the stock market and real estate bubble to take the initiative to hand the Americans a knife, and finally in exchange for the result of losing N years.
Because wealth has not invested in itself and industries have not been transformed and upgraded, Japan can only invest in other countries to earn spreads and increase its own productivity if it wants to maintain its original economic height. But there is a limit to human productivity, and an ordinary person can eat three people's meals, just as the workload of the post-war baby boomers can be borne by the next generation with a shrinking population? The workload of the original 3 people must now be borne by 1 person, so young Japanese people must work overtime to complete the work of their predecessors.
The more desperately they work, the more they compress the lives of young people, and at the end of the day young people are exhausted, but their incomes shrink as inflation rises, so what else do they have to think about raising the next generation to increase the population of Japan? Japan is still a feudal society strengthened by capitalism, and the strong social will makes young people more pessimistic and fearful of the future, which will further reduce the population of Japan.
We go from the economic micro world of young people to the macro currency, Japan's monetary support is based on its own debt, that is, Japan's future productivity, then everyone expects that Japan's labor force and productivity will continue to decline in the future, so even if Japan has more dollar assets, what is the use? Like an old man with a broken old man guarding a safe of cash, he can no longer work to continue to increase his income, and can only rely on this cash to survive in his old age, while praying that the currency will not depreciate too quickly and turn the money into waste paper.
USD/JPY rises rapidly The yen plummeted
Now the problem is that the old man is worried about the thing happened, the United States has been unable to control its own inflation, because this time the inflation is the United States itself, but also a hard material level of inflation, can not rely solely on virtual monetary policy to completely solve, so the dollar is rapidly depreciating, the yen anchor collapsed its own currency and has no roots, the result is that the yen collapsed even more severely, only a bunch of numbers are left but can not buy anything, what is the difference between that and "hadcoin"?